Several critical COVID-19 economic relief programs will expire at the end of the year, which could force millions off of unemployment insurance, push many small businesses to close permanently, and raise the specter of mass evictions. This could threaten the stability of the US economy as the country enters an uncertain 2021.
In March, during the early days of the coronavirus pandemic, the $2 trillion Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, quickly passed both houses of Congress with bipartisan support, providing a lifeline to recently laid-off employees and businesses that were forced to close due to COVID-related shutdowns.
However, this legislative comity quickly dissipated as the pandemic wore on. The $3 trillion Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act, which followed the CARES Act, passed in the US House of Representatives in May but was stymied in the Senate. While Democratic House Speaker Nancy Pelosi championed the bill, GOP Senate Majority Mitch McConnell deemed it too expensive.
Stimulus gridlock has largely ensued ever since, with Treasury Secretary Steven Mnuchin working with Pelosi and McConnell for months with little progress. Pelosi wants a $2.2 trillion stimulus package, while McConnell has sought a $500 billion plan, but the leaders have not hashed out a compromise. Nor have their staffs worked together to forge any consensus on a potential bill. On November 19, Mnuchin expressed his desire to have $580 billion in unspent stimulus funds redirected to small businesses and extend unemployment benefits. It is unclear if this will occur, however, as it requires Congressional approval.
Do you think President-Elect Biden will be able to get stimulus package approved through the Congress?
https://www.businessinsider.com/stimulus-programs-cares-act-economy-covid-19-pelosi-mcconnell-trump-2020-11
6 comments:
I am optimistic that Biden will be able to get some sort of stimulus package through Congress as he begins his presidency. It may not be to the level that many Democrats would want, instead some sort of compromise in the middle. With many states revamping some sort of lockdown during the holiday season, and COVID numbers quickly rising, the sense of urgency will hopefully push something through. Many small businesses, particularly restaurants, need some sort of assistance if they are to make it through the winter. Without it, sadly more and more businesses will fall belly up.
I agree with Jack. It is possible that Joe Biden will be able to get a stimulus check bill for people and businesses once he steps into office. Biden has recently urged Congress to pass a stimulus check bill, once he officially becomes President he will have to rally legislators around this economic recovery effort. The extent to which this will be done is not certain, however, I believe that given the predictions regarding the rise of cases as the winter settles in and with holidays coming up, such a bill will be vital for economic recovery.
I am hopeful that a stimulus is available soon. As the others stated, cases in winter are expected to rise and with that small businesses will struggle more than they already are. The only way to handle this would be to lend a hand to these businesses through this check. I am concerned with how we will pay back this mass handout considering it will be the second trillion dollar package for the country.
with all the talk around a new round of stimulus being available soon I am not very worried about the expiring ones if we can quickly pump out a second round and who know maybe this second round will be even more effective then the last seeing how we kind of know what we are doing now
I think there will definitely be some sort of aid help, but the amount and reach is uncertain. There is talk about more of a compromise aid package that would allow for the renewal of the unemployment insurance program and some extra money to small businesses, unemployed workers, and state/local governments. This would allow more time to get another larger stimulus to get passed.
I am hopeful that the package that Biden is approving does get through. During the winter, COVID cases will rise, so I think the need for this aid is critical because everybody would have to get new aid available to them. With the aid transition, I feel it will be a little difficult, but hopefully, it gets through.
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